FX.co ★ Czech Industrial Outout Decline Worsens, Trade Surplus Grows

Industrial production in the Czech Republic declined for the third consecutive month in May, mainly due to a weaker manufacturing sector, according to data released by the Czech Statistical Office on Monday.

In another set of data, the foreign trade surplus expanded in May compared to the previous year, driven by an increase in exports and almost no change in imports.

Year-on-year, industrial production fell by an adjusted 3.2 percent in May, a significant acceleration from the 0.4 percent decline recorded in April. Economists had anticipated a more modest 0.6 percent decrease for the month.

Breaking down the sectors, manufacturing output saw a 4.0 percent contraction from the previous year. In contrast, mining and quarrying activities showed a slight recovery with a 0.3 percent increase. The utilities sector contributed most positively, witnessing a 7.0 percent rise in production.

Additionally, construction output experienced a sharp annual decline of 6.8 percent in May, compared to just a 0.2 percent dip in the prior month.

On a month-to-month basis, industrial output contracted by 2.2 percent in May.

In a separate report, the Czech Statistical Office indicated that the country’s trade surplus increased to CZK 13.6 billion in May, up from CZK 9.2 billion in the same month last year.

For comparison, the trade balance posted a surplus of CZK 32.3 billion in April.

Exports experienced a year-on-year growth of 1.2 percent in May, while imports remained unchanged.

The largest increases in both exports and imports were seen in motor vehicles, computers, electronic devices, and optical instruments. Conversely, the most significant declines occurred in the trade of electrical equipment and machinery.